Ambac Wins 2nd Circ. Approval For $33M Securities Settlement

Law360, New York (July 12, 2012, 3:38 PM EDT) -- The Second Circuit on Thursday approved Ambac Financial Group Inc.'s $33 million settlement in a class action alleging it backed toxic securities, overruling a plaintiff that alleged the deal improperly released derivative claims against the bankrupt bond insurer.

A three-judge panel rejected an appeal by The Police and Fire Retirement System of the City of Detroit and affirmed a New York federal court’s September 28 approval of the settlement. The deal wrapped up a consolidated securities action claiming Ambac recklessly insured risky structured finance transactions tied...
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